GST Circular No 247/2025
The CBIC, through Circular No. 247/04/2025-GST dated 14.02.2025, clarified GST rates and classifications based on the 55th GST Council meeting held on 21st December 2024. Key updates include GST applicability on various goods, such as pepper (Genus Piper), which is taxed at 5% under HS Code 0904, with dried pepper from agriculturists exempt from GST. Similarly, raisins directly supplied by agriculturists are also exempt, with no GST registration required for these supplies.
The circular also clarifies GST rates for ready-to-eat (RTE) popcorn, with variations based on packaging. Popcorn mixed with salt or spices (HS Code 2106) attracts 5% GST when sold loose, and 12% when pre-packaged. Caramel popcorn, classified as sugar confectionery (HS Code 1704), is taxed at 18%. Additionally, past transactions before February 14, 2025, will not attract penalties or tax recoveries
due to classification confusion.
Furthermore, the circular clarifies the GST rate for fly ash-based products like AAC blocks, which are taxed at 12% if they contain at least 50% fly ash. Cement-based products, such as cement blocks, are taxed at 18%. Lastly, the effective date for the amended ground clearance rule for SUVs has been clarified as July 26, 2023, with the 22% compensation cess applying to vehicles meeting certain criteria, including ground clearance in an unladen condition.
